Multinational Enterprise (U.S.A) Essay Example | Topics and Well Written Essays - 3250 words

Multinational Enterprise (U.S.A) - Essay Example With a total area of 9,831, 513 square kilometers (Census bureau, 311), the United States is the third largest country in the world after Canada and the Russian Federation. The large stretch across the North American continent makes the country experience different kinds of climate and thus different types of vegetation. The region is thus a home to various species of plants and animals. This is a contribution towards being the country with the largest economy in the world. According to Population Reference Bureau (para.1), the US â€Å"is the third most populous country in the world after China and India† (See Appendix 2). The 2010 population census showed a figure of about 308 million and the population is currently estimated to be about 311 million (Population Reference Bureau, para.1; US Census Bureau, para.1). The population consists of individuals from diverse culture due to the slave trade that brought individuals from across the world into the country in the middle of the second millennium. There are Americans of African, Asian, Spanish, Mexican, or French origins that came into the country either as the conquerors or as slaves that were brought in to promote the agrarian and industrial revolution that was already taking place in the region. The presence of different cultures in the United States also led to different languages being spoken in the country. English is the most popular language in the country (Schmidt, 1). There are other languages like French, German, Spanish, and many others spoken in the country (See Appendix 1). For some period after the Second World War, a Cold War was experienced between the United States and the Union of Soviet Socialist Republic. USA was and remains to be a capitalist state whereas USSR was a communist state. The two federal states were fighting for allies from different countries and the power to monopolize the economy of the world. Each of the countries had expertise in the development of war weapons and was a threat to each other’s power to rule the world. The collapse of the Soviet Union in early 1990s led to the emergence of the United States as the worlds’ super power. Introduction A multinational enterprise (MNE) or Multinational Corporation (MNC) is an organization that operates or conducts business across two or more countries. The company produces its products and services and delivers the products/services to different countries. The organization usually has its central place of operations (the head quarter) located in one country called the home country and operates in other countries referred to as host nations. As globalization increases with an increase in competition in the local and global markets, most large organizations strive to establish themselves in other countries that perhaps may have better market opportunities, availability of materials for the production of the products or cheap labor that reduces the cost of production. The increased deregul ation and liberalization of local markets across the globe has attracted foreign investors into other countries in search of new market opportunities, raw materials that are readily available and cheap labor in these regions. In many cases, the developed nations are the source countries for most of the foreign direct investment as they have well established